Hot summer helps Magnum scoop surge in sales
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The Magnum Ice Cream Company has upgraded its annual sales outlook after seeing sales boosted by the long and hot summer across European markets.
The group reported 9.6% organic sales growth for the third quarter, with the “extended summer” contributing around 2%-3% to growth, according to Magnum.
The Amsterdam-listed group – which was spun out from previous owner Unilever in December last year – said it now expects annual sales to grow by around 5.5%, compared with previous guidance for about 3%-5%.
It is the world’s largest ice cream maker and also makes brands including Cornetto and Carte D’or.
The firm said strong demand for products such as its new pistachio Magnum range, a “reinvigorated” Solero and new Cornetto flavours also helped boost sales growth over the quarter, alongside the boost from heatwaves and ongoing warm weather throughout September.
Peter ter Kulve, chief executive of the Magnum firm, said: “Sales of our leading brands have accelerated, powered by innovation.
“All regions continued to grow, including the US, our biggest market.
“Improved execution and operational rigour enabled us to capitalise on strong demand, especially in Europe, and win share.”
The update showed the group also raised prices as it looked to offset higher energy and oil prices caused by the Iran war.
Price increases accounted for 2.2% of its 9.6% quarterly sales growth.
